The outlook for the private rental sector (PRS) in Britain appears positive for 2018, as existing landlords are keen on expanding their property portfolio over the next 12 months.
Despite changes in the buy-to-let market and the challenges the industry faced last year, a new report from Aldermore, the specialist bank, revealed that private landlords were positive about the future of the market, and the opportunity it presented.
The report noted that 44 per cent of the landlords were of the view that the PRS would grow while 17 per cent of them intended to expand their own buy-to-let portfolio over the next year. Amongst ‘portfolio landlords’ (those with at least four properties), 41 per cent were in a position to expand their portfolio over the next year.
For the existing landlords and buy-to-let investors, the rental market was a sound investment opportunity, with yields far outpacing current savings rates. Many also acknowledged the opportunity, with the increasing demand for rental properties in areas where house price growth is the fastest.
The PRS holds promise for buy-to-let investors in the UK from the long-term, especially with the house prices climbing consistently. The growth in rental values is also steady in many regions. Consequently, more buy-to-let investors are entering the PRS market.
Despite predictions the market will shrink, almost more than two in five landlords (44%) believe the private rental sector will grow, with one in six (17%) hoping to expand their own buy-to-let portfolio over the next year.